The potential of services that combine trade finance and freight services has been understood for some time.
In a 2018 report, Boston Consulting Group estimated venture capitalists had poured more than $3.3 billion into digital shipping and logistics start-ups between 2012 and 2017, and suggested that digital freight forwarders would inevitably expand their offerings to connect to other service offerings along the logistics value chain.
In June, UK-based digital freight forwarder Beacon announced it had raised more than $15 million in its Series A fundraising round.
The company believes its ability to offer supply chain finance alongside freight forwarding will allow customers to better control and manage their cash flow – suppliers often demand payment before goods are shipped and, with months-long shipment times, importers need flexible finance to meet their working capital needs.
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Fraser Robinson, |
“By working with customers to solve their working capital constraint problems, we can provide a simpler and more complete solution that is also more interesting economically,” says CEO Fraser Robinson.